Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

This is one of the Government's main taxation proposals. It will take in €145 million in additional taxes from people who consume alcohol. The retention of the 9% VAT rate for the tourism sector been dressed up by the Minister as making up for this, but the 9% VAT rate for 2014 will amount to slightly more - around €290 million from across the entire hospitality and tourism sector. This will be a blow to vintners and, most importantly, individuals. My question to the Taoiseach is whether he can give us some indication of the homework he has done on this. As the longest-serving Member of the House, the Taoiseach remembers debates about the driving force for cross-Border shopping, which was alcohol sales. Can the Taoiseach give an indication of the homework the Government has done on the factors at play in the levying of an additional 50 cent on a bottle of wine in terms of the average price of a bottle of wine in Tesco compared to one in Asda? Has the Government done its homework on whether there is potential for the Government to drive people to purchase alcohol across the Border?

I have no problem with anyone shopping on either side of the Border. County Donegal, my home county, gets the benefit of people deciding to buy petrol and diesel on this side of the Border. Likewise, residents in Derry get the benefit of shoppers going in the other direction. However, when alcohol sales are a driver of cross-Border shopping, people stock up on alcohol beyond what they would consume if they were going to the local supermarket. Has there been analysis of this?

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